On 16 September 2026, the Federal Reserve is expected to raise interest rates, causing shorts in U.S. Treasuries to surge as traders position for further rate hikes.
- 10-year Treasury yield climbed to its highest level since 2007 on Tuesday;
- two-year yield reached its highest point since 2024;
- JPMorgan’s latest Treasury client survey showed short positions increasing by 10 percentage points in the week to 14 September;
- markets are pricing a more than 90% probability of a 25-basis-point increase.